Stop Losing Money on Merch

Stop Losing Money on Merch

(OR: How to Quit Treating Your Merch Table Like a Donation Jar)

If you’re running a franchise, a service business, or a brand where merch isn’t your core business, you probably didn’t get into this to manage inventory spreadsheets. You’re here to run great locations, deliver customer experiences, and build your brand. But somewhere along the way, uniforms, branded gear, and customer merch became part of the equation.

And now, that “side project” is eating your margins.

We’ve seen it over and over. A fitness franchise ordering bulk uniforms to get a better unit price, only to end up with storage rooms full of unused apparel. Or a restaurant chain spending months developing a merch capsule that misses the season entirely. One group we spoke to recently had accumulated over $3 million in unsold inventory. All of it was purchased in the name of cost efficiency.

The problem isn’t that these businesses sell merch, it’s that they’re running their merch like a retailer when they’re not one. 

The solution isn’t more merch. It’s smarter systems.

Merch only becomes profitable when it’s treated as a system, not a series of disconnected tasks. That means thinking holistically about production, technology, warehousing, manufacturing, and logistics as one integrated operation.

A true partner doesn’t just print products; they provide a comprehensive, white-glove solution that looks after every component, from managing logistics costs and fulfillment to maintaining the ordering website and backend infrastructure.

When everything is connected, inefficiencies disappear. And when logistics, tech, and production are handled together, brands stop bleeding money in places they didn’t even know to look. (YES, we can do all of this for you. Talk to us. )

The Real Cost of “Cheap” Merch

Many organizations chase the lowest cost per unit, thinking volume buys are the path to margin. But the real killer isn’t what you pay per hoodie, it’s what you pay to store, manage, and eventually discount or discard unsold goods.

Example Calculation:

  • You order 1,000 pieces instead of 300 to save $2 per unit.
  • You sell 60% of them.
  • You now have 400 units aging in a warehouse or backroom.
  • You’ve paid for production, shipping, storage, and tied up cash that could be fueling marketing or operations.

That’s not cost savings, it’s a silent drain on your P&L.

Why Traditional Vendors Fail Retail-Adjacent Brands

Franchises, service brands, and IP owners have unique needs that typical retail vendors can’t meet:

  • Low minimums: Each location might only need 10–25 units of a style.
  • Fast turnarounds: You can’t wait 12 weeks for uniforms or new merch drops.
  • Flexible tech: You need a portal that handles orders, approvals, and brand control across multiple locations.
  • Agility: Your brand and campaigns change quickly; your merch program needs to keep up.

But many providers push rigid systems. Large MOQs, slow lead times, and outdated ordering tools that were built for big box retail, not modern multi-location businesses.

From Dead Stock to Sell-Through: How to Fix Your Merch Program

1. Focus on Turnover, Not Unit Cost

Order less, more often. Production flexibility beats bulk discounts. The goal is to sell through every item before reordering — not to brag about your cost per unit.

At TVP, we help brands aggregate orders across multiple locations so each can order in small runs (10–25 units) while the system produces efficiently in micro-batches.

2. Use Smart Portals for Control and Efficiency

Give every location the freedom to order uniforms or approved merch — without chaos. A good portal should include:

  • Per-location budgets and approvals
  • Live inventory and ETA tracking
  • Brand asset management and SKU governance
  • Reporting on spend and sell-through

This replaces spreadsheets, phone calls, and one-off vendor requests with a single streamlined hub.

3. Build Retail Concepts That Move

Your merch should feel curated, not leftover. Design small, seasonally relevant assortments, a core kit that every location carries, plus local overlays that reflect each community.

When drops are small and strategic, you can test, learn, and adapt instead of betting big on guesses.

4. Stop Overpaying for Shipping and Storage

Shipping and warehousing quietly eat your profits. Here’s how to stop the leak:

  • Ship smarter: Use tools that automatically select the best carrier rate.
  • Bundle orders: Offer free shipping thresholds to consolidate shipments.
  • Limit storage: Use on-demand production to reduce or eliminate warehousing.

Every dollar saved on fulfillment is a dollar you can reinvest into growth or product innovation.

5. Speed Is Profit

Your merch shouldn’t take quarters to launch. With on-demand production and connected systems, you can go from concept to delivery in weeks — not months. Faster cycles mean fresher designs, stronger engagement, and better cash flow.

Case Snapshot: Turning Merch Into a Profit Center

A national fitness franchise came to us frustrated by slow-moving uniforms and inconsistent merch across 30+ locations. Their challenge: each location wanted small quantities, but their vendor required bulk orders.

We built a flexible online portal and connected them to a production network that supports micro-batch manufacturing. Within two months, every location could order approved items in quantities as low as 15 units, with shared artwork and consistent branding.

The result: They can look forward to no dead stock, faster replenishment, and a merch line that finally contributes to profit instead of debt.

How to Tell if Your Merch Program Is Losing You Money

Run through this quick checklist:

▢ You order in bulk to hit lower unit costs

▢ You have more than 60 days of inventory sitting unsold

▢ Each location has a different, inconsistent merch setup

▢ Your vendor requires high MOQs or long lead times

▢ You’re spending on warehousing or fulfillment fees

▢ You don’t know your sell-through rate per SKU

▢ If you checked two or more boxes, your merch program is costing you money.

The TVP Way: Make Merch Work for You

At TVP, we help franchises, media brands, and other retail-adjacent organizations turn merch from a cost center into a profit engine.

Our approach:

  • Smart online stores & portals for location-level ordering and brand governance
  • Flexible production that supports low minimums and fast turnarounds
  • Data-driven programs designed for inventory turnover and sell-through

Because at the end of the day, it’s not about selling hoodies, it’s about creating a system that keeps your brand consistent, your cash moving, and your accountants smiling.

Want to See How Much You’re Losing?

Send us your top 10 SKUs and your last 90 days of orders. We’ll identify where you’re losing money. And show you how to fix it.

Reading next

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From Concept to Doorstep: How Custom Merch Is Made (and How to Do It Right)